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Brasileiro Clubs See Worst Financial Year, Surpass Budgets On Football Expenses

The 20 largest Brasileiro football clubs "had the worst year in history in terms of finances" with a deficit of R$598M ($195.2M) for '14, according to Fábio Suzuki of LANCENET. The total revenue from these clubs reached R$3.1B ($1B) while expenses reached R$3.7B ($1.2B). However, the total club debt reached R$6.3B ($2.1B), "an increase of 16.7%" from '13. On the contrary, though, Brasileiro side Flamengo's revenues "rose by 27%," totaling R$347M ($113.2M), which was the "largest in the country" (LANCENET, 5/5). In São Paulo, Marcel Rizzo reported 16 of the 20 Brasileiro Série A clubs "surpassed the 70% maximum expense limit" placed on football. The 70% "ceiling" for football expenses "is a requirement that clubs must fulfill in order to refinance debt" through the Medida Provisória. Accountancy and business advisory firm BDO consultant Pedro Daniel: "The cost of football indicates if management is being efficient. We conducted a study that concluded that the limit should be 70% of revenue for football costs, as a way to avoid debt, now that there are other costs like infrastructure, taxes ..." (FOLHA DE SÃO PAULO, 5/5). 

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